A feasibility study provides insights into the future

A feasibility study is research conducted with the aim of revealing whether the demands placed on the logistics operation can be met. In a logistics feasibility study, we gather data, discuss the current situation and clarify the future situation so that you can make a sound decision based on accurate and quantified information.

Feasibility study for logistics
At consulting firm Groenewout, we have a proven track record in conducting thorough feasibility studies of logistics concepts as well as designing, optimizing and implementing such concepts. Areas for which a feasibility study can make sense include:

  • Potential expansion of a distribution center
  • Optimal layout and (re)design of a distribution center
  • Identifying the optimal logistics process
  • Gaining insight into the potential savings generated by a new logistics concept
  • Decisions on insourcing or outsourcing of logistics activities
  • Projecting business cases (‘what if’ scenarios)

A feasibility study is based on a clear, quantitative foundation thanks to our use of various models that we have developed in-house. However, the quantitative aspects are not the only important element in determining the most effective logistics system. Qualitative criteria such as flexibility, risks and efficiency are also included and evaluated in the feasibility study.

Feasibility study for SK-Pharma
In order to give you a sense of our consultancy’s approach relating to feasibility studies, we are pleased to outline the project we completed for our client SK-Pharma. SK-Pharma is a pharmaceutical company based in Kazakhstan. One of the company’s key objectives was to win governmental contracts for the supply of pharmaceutical products and related services. For Kazakhstan’s national health service, the country’s government had opened public tenders for both domestic and foreign producers and suppliers.

SK-Pharma asked us to conduct a feasibility study to evaluate its logistics network strategy for procurement and distribution. We divided this project into 4 phases, as follows:

  1. Defining business requirements and the forecast sales volumes
  2. Determining the optimal distribution network
  3. The design and layout of the warehouse
  4. Investment calculations and the financial business case (with help from E&Y)

Thanks to our advice, SK-Pharma now has strategic financial insight and the optimal distribution strategy. Our recommendations were supported by operational designs of the associated logistics network and the warehouses. In addition, we developed an approach for the transition phase which included aspects such as a human resources plan and consideration of the IT landscape.

More feasibility references:

  1. SK Pharma
  2. Deli XL
  3. Jabil
  4. V&D

Would you like to know more about a feasibility study in relation to your logistics? If so, please feel free to contact our expert:

Wendel Dijker

Wendel Dijker
Managing Consultant & Partner
E: dijker@groenewout.com
T: +31 6 2122 0408

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